AllHome boosts EBITDA despite Covid surge

Published May 17, 2022, 2:03 PM

by James A. Loyola

AllHome, the country’s pioneering one-stop full line home center, reported a 7.7 percent increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) to P856.2 million in the first quarter of 2022.

AllHome

In a disclosure to the Philippine Stock Exchange, the firm said it generated P3.24 billion in revenue for the first quarter of the year.

These figures showed remarkable growths of 36 percent for revenues and 67 percent for EBITDA versus same period of 2019, pre-pandemic.

“While AllHome was affected by prevailing circumstances in the country—the worldwide pandemic and the recent surge of the Omicron variant in particular—we were able to again demonstrate our capability to adapt and capitalize on opportunities presented,” said AllHome Chairman Manny B. Villar Jr.

AllHome Chairman Manuel B. Villar, Jr.

He added that, “At present, Metro Manila is already under much more relaxed restrictions. Footfall in malls and other retail establishments are continuously returning to levels that compare favorably to pre- pandemic conditions, a welcome indicator of the country’s continuing return to normalcy.”

With the rise of “revenge retail” as a customer behavior trend, AllHome Vice Chairman Camille Villar maintained confidence in the chain’s ability to capitalize on market shifts and emerging customer preferences.

AllHome Vice Chair Camille Villar

“The shift to a much-improved post-pandemic retail landscape is clearly on the horizon—if not here already—and we are confident in AllHome’s ability to respond favorably to the new challenges ahead,” she said.

Ms. Villar noted that, “The AllHome experience is built on the foundation of elevated customer journeys and touchpoints, ably highlighting the country’s only one-stop full line home retail offering.

“The combination of both is a potent formula in attracting customers who are now hungry for better tailored customer experiences after almost two years of restricted movement.” she added.

Ms. Villar also emphasized AllHome’s elevated home shopping experience and its continuing integration with e-commerce.

“Our omni-channel strategy continues to build on providing our customers with a seamless experience between and across the digital channel and physical stores,” she said.

Meanwhile, AllHome President and Chief Executive Officer Benjamin Therese Serrano said that the chain is leaning into its strategies towards hitting 100 stores by 2026.

“In addition to embracing an omnichannel strategy to bring the the AllHome experience closer and closer to our market, we are highly confident that current market conditions will enable us to go full speed with all our strategies to reach 100 stores by 2026,” she said.

Serrano said “We continue to make headway in terms of operational efficiencies across total chain. We continue to optimize our store format, with our ‘right-sized’ new generation stores the key execution as we continue to open stores throughout 2022.”

“These new stores afford us minimized CAPEX and selling space that in turn provide efficiencies in utility costs and rent. This also allows us more e-commerce capabilities in terms of logistics areas. We also continue to improve on store profitability with margin enhancement initiatives through our in-house brands, strategic pricing and the pursuit of exclusive brand offerings with our partners,” Serrano added.

She also noted that with the continued normalization of the country’s pandemic situation, AllHome is again poised to fully leverage its synergies with the Villar Group—retail and real estate in particular—in providing the best value proposition for its customers.

 
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